What do people buy but hope to never use? Life insurance of course! Costly premiums and the questionable likelihood of one needing it, makes us consider whether it is really worth it. Quick Loans Express explores the topic in detail. Read on to find out more.

Story Highlights:

  • What is Life Insurance?
  • How does Life Insurance Work?
  • Why do people take out life insurance?
  • Is Life Insurance for Me?
  • Types of Life Insurances on the Market
  • Is Life Insurance for Me?

The world has exploded with many different varieties of financial assistance to be used and considered at various stages in life. It may be your student loan assisting you with starting your career; a mortgage to buy a house; an instant payday loan for bad credit to help in an emergency or life insurance to safeguard your family financially. However, despite assisting you financially, they can be expensive, and the cost might not justify the ends. In this article, Quick Loans Express evaluate whether life cover insurance is an option for you and how it works.

What is Life Insurance?

Sometimes referred to as life cover, life insurance is designed to help your dependents cope if you pass away during the time of the insurance period. It provides your loved ones and yourself with a reassurance that in the event of passing on they are financially able to move on. The life cover comes in a cash sum pay-out and covers things such as debt the deceased may have incurred over time, child care costs and other financial aid to cover household bills. The cost of the policy depends on many different factors including your age, health and lifestyle.

How Does Life Insurance Work?

It varies across different insurers but the standard life cover works by an individual choosing a period, and how much they are willing to pay per month, it is also based on how much the individual would want to be paid out to his loved ones in the event of death. Different plans range from basic to more specific. Individuals are most likely to take out an insurance that will cover his/her children until they are 18 or until the end of their child’s university years.

Why Do People Take Out Life Insurance?

There are many reasons why individuals would want to take out life insurance including:
• They have dependents like children who are of school age
• A partner that relies financially on their income
• As a family, there is a mortgage to pay that would not be able to be paid without that individual’s income

Types of Life Insurances on the Market

There are 3 main types of life coveron the market. Quick Loans Express offering loans direct, break this down.

A Term Life Insurance means that the policyholders (the person taking out the insurance) chooses the period he wants life insurance to cover and the amount s/he wants to be covered for. For example, s/he want to be covered for 20 years for £200,000 payout in case of death. The policyholder will pay a premium each month until the insurance period runs out. When taking out insurance, there are two ways of paying a premium.

  1. Level Term – The policyholder pays an equal premium every month
  2. Decreasing Term – The monthly premium cost decreases over time.

The policyholder pays for their whole lifetime as opposed to a fixed term. However, the insurance becomes invalidated if the terms of the policy are breached.

Because the life expectancy of an over 50-year-old is considerably lower, there are separate policies dedicated to that age group. Only over 50-year-olds can take out this type of insurance. Again, there is a premium which the individual will pay. However, before taking out this type of life cover, it is important to remember that some policies will have age limitations for claims. They also may have exclusions for long term illness, disability – total or permanent and critical illness cover, etc. People may look for additional protection or choose to swap life insurance to cover what others have excluded.

Is Life Insurance for Me?

Taking out life insurance is a critical consideration to make for people who want to ensure their family have financial security in the case of death. It will cover you for debt such as the remainder of a mortgage. It will also help your family cover the costs of the funeral and for everyday expenses. However, life cover is expensive, and it is not something everyone can afford. It is also not necessarily a worthwhile investment for people who do not have dependents – like children who are financially independent, are single and have not got any debt to pay off.

Taking out life insurance will only help the family and not the person who has passed on. It’s a lot of money, for something, you yourself will not reap benefit from although your family will benefit greatly from it and it is a real gift. Did you know, Quick Loans Express have a exclusive high acceptance rates for same day loans for bad credit of up to £2000.

Crystal Evans
Crystal is a Web Content Manager with a passion for helping others. A Marketing Specialist by trade, Crystal’s first job was in the financial sector and she has been adding verve to personal finance ever since! When in high school, Crystal enjoyed creating revision notes and study aids for her peers – making concepts Crystal Clear. She continues this practice in the post-university School of Life – channelling her love of sharing information into blogging about personal finance

The article "Life Insurance: Is it Really Worth It?" was last modified on

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